A subsidy means _____.

financial investment by the Government

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benefit provided by the Government

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compulsory rebate by the Government

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none of these

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Solution

The correct option is B benefit provided by the Government
A subsidy is an economic benefit or financial aid given by the government to individuals, institutes or organisations in the form of a cash payment or a tax reduction. It is considered to be in the interest of the society as it removes their burden.

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Similar questions

Q. A banking system in which banks provide a wide variety of financial services, including both commercial and investment service is called __________.

How does a subsidy influence the supply of a good by a firm? Explain.

Q. In a financial year monthly salary of a person is Rs.

50, 000

. He deposited Rs.

60, 000

in Prime Minister's relief fund on which income tax rebate is

100

%. He denoted RS.

20, 000

to a hospital on which income tax rebate is

50

%. He invests RS.

7, 000

per month in G.P.F. Rs.

15, 000

annually in L.I.C and purchases N.S.C for Rs.

35, 000

. Find income tax to be paid by him in that financial year. Rates of income tax are as follows:

100

% rebate up to total savings of Rs.

1, 00, 000

Taxable income	Income Tax
(i) Upto Rs. $2, 00, 000$	Nil
(ii) FRom Rs. $2, 00, 001$ to Rs. $5, 00, 000$	$10$ % of amount exceeding RS. $2, 00, 000$

In addition Education Cess:

3

% of income tax.

The center reportedly wants to continue providing subsidy to consumers for cooking gas and kerosene for five more years. This is not good news from the point of view of reining in the fiscal deficit. Mounting subventions for subsidies means diversion of savings by the government from investment to consumption, raising the cost of capital in the process. The government must cut expenditure on subsidies to create more fiscal space for investments in both physical and social infrastructure. It should outline a plan for comprehensive reform in major subsidies including petroleum, food and fertilizers and set goal posts.

Which of the following is a conclusion which can be drawn from the facts stated in the above paragraph?

Accounting information refers to the financial statements. The information provided by these statements can be categorised into various types. Briefly describe them.

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